Energex CEO Blasted With $9.5M Fraud Suit

Law360, New York (July 19, 2011, 4:21 PM EDT) -- New Jersey regulators on Friday filed suit against the head of defunct medical device manufacturer Energex Systems Inc., accusing him and his wife of running a $9.5 million investment scam.

The New Jersey Bureau of Securities alleges that Energex CEO Thomas Fagan peddled unregistered shares in the medical device company and, along with wife Candace Fagan, looted the company of millions of dollars in investor funds.

“Fagan cheated investors by distorting the line between his personal and business expenses, misappropriating investor money that he controlled. Through...